Property Valuation
A Nebraska property has a front porch that needs repair (cost = $2,000 to repair, adds $2,000 in value). The depreciation is:
AExternal obsolescence
BIncurable physical deterioration
CCurable physical deterioration✓ Correct
DFunctional obsolescence
Explanation
Curable physical deterioration exists when the cost to cure equals or is less than the value added. At $2,000 cost = $2,000 value added, it is curable. The deferred maintenance is worth fixing.
Related Nebraska Property Valuation Questions
- Highest and best use of a property is defined as the use that is:
- The principle of conformity holds that a property achieves maximum value when:
- An appraisal is defined as:
- Gross Rent Multiplier (GRM) is calculated as:
- External (economic) obsolescence is a form of depreciation caused by:
- When appraising a Nebraska property in a rapidly appreciating market, the appraiser should:
- Reconciliation in the appraisal process is the step where the appraiser:
- Appraisal reconciliation is the process of:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →